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CGAU vs. AEM: Which Stock Is the Better Value Option?
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Investors interested in Mining - Gold stocks are likely familiar with Centerra Gold Inc. (CGAU - Free Report) and Agnico Eagle Mines (AEM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Centerra Gold Inc. and Agnico Eagle Mines have a Zacks Rank of #1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CGAU currently has a forward P/E ratio of 12.47, while AEM has a forward P/E of 20.46. We also note that CGAU has a PEG ratio of 0.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AEM currently has a PEG ratio of 0.61.
Another notable valuation metric for CGAU is its P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AEM has a P/B of 4.22.
These metrics, and several others, help CGAU earn a Value grade of B, while AEM has been given a Value grade of D.
Both CGAU and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CGAU is the superior value option right now.
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CGAU vs. AEM: Which Stock Is the Better Value Option?
Investors interested in Mining - Gold stocks are likely familiar with Centerra Gold Inc. (CGAU - Free Report) and Agnico Eagle Mines (AEM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Centerra Gold Inc. and Agnico Eagle Mines have a Zacks Rank of #1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CGAU currently has a forward P/E ratio of 12.47, while AEM has a forward P/E of 20.46. We also note that CGAU has a PEG ratio of 0.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AEM currently has a PEG ratio of 0.61.
Another notable valuation metric for CGAU is its P/B ratio of 1.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AEM has a P/B of 4.22.
These metrics, and several others, help CGAU earn a Value grade of B, while AEM has been given a Value grade of D.
Both CGAU and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CGAU is the superior value option right now.